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J&J Seeks to Lower Price of Deal With Elan

By

Jeanne Whalen and

Jeffrey McCracken

Updated Sept. 14, 2009 11:59 p.m. ET

Johnson & Johnson is negotiating to reduce the price of a previously announced $1.5 billion deal with Elan Corp., according to people familiar with the matter, after a federal judge ruled earlier this month that part of the deal breached a separate partnership between the Irish biotech firm and Biogen Idec Inc.

J&J is attempting to knock at least $100 million off of the $1 billion in cash it agreed to pay as part of the alliance, these people said, adding that the new terms could be announced in coming days. J&J's...